PE Pulse: five takeaways from 1Q 2022

NextWave Private Equity

Pete Witte, EY Global Private Equity Lead Analyst, explores the key themes and market dynamics from 1Q 2022 that are top of mind for PE investors.

PE Pulse is a quarterly report and corresponding podcast miniseries that provides analysis and insights on private equity market activity and trends.

Visit https://www.ey.com/pepulse to view this quarter’s summary and infographic.

Five takeaways from 1Q 2022:

1. The macroeconomic environment is top of mind for investors as uncertainty impacts growth, inflation and interest rates
2. PE deal activity decreases 27% from 1Q 2021: despite a softening in activity from the breakneck pace of last year, this level of activity is still quite robust
3. Geopolitical uncertainty: PE firms are using the same playbook they used during the COVID-19 pandemic to manage the impact from the war in Ukraine
4. PE exit activity decreases 60% by value from 1Q21: PE will continue to do what they have always done, which is execute on strategy and look to exit when conditions are more amenable
5. Secondaries market reaches new heights: GP-led deals are key drivers of this trend, as they providing optionality for LPs